Fiscal Year Ending March 2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Business Results

In the consolidated cumulative third quarter period of the fiscal year ending March 2026, net sales amounted to ¥549.461 billion (5.8% decrease YoY). Although sales of electronic materials increased, overall revenue declined due to decreases in engineering plastics and methanol market prices as well as the impact of withdrawing from the orthoxylene chain business. Operating income was ¥37.804 billion (16.5% decrease YoY), affected by increased fixed costs from capacity expansion at the Taiwan site and price declines due to intensified competition, resulting in reduced profits. Ordinary income was ¥48.171 billion (10.6% decrease YoY), reflecting improved foreign exchange gains and losses but offset by decreases in equity-method income. Net income attributable to owners of the parent for the quarter resulted in a net loss of ¥26.160 billion due to the recording of impairment losses on fixed assets.

Financial Position and Earnings Guidance

Total assets decreased by ¥5.3 billion from the end of the previous term to ¥1,114.368 billion, net assets decreased by ¥26.9 billion to ¥670.450 billion, and the equity ratio fell to 57.2%. Liabilities increased by ¥21.6 billion to ¥443.917 billion. The number of outstanding shares remained unchanged at 211,686,599 shares, with treasury shares slightly decreasing to 16,944,258 shares. The full-year earnings forecast for the fiscal year ending March 2026 anticipates net sales of ¥730 billion (5.6% decrease YoY), operating income of ¥47 billion (7.6% decrease YoY), ordinary income of ¥55 billion (8.8% decrease YoY), and a net loss attributable to owners of the parent of ¥18 billion. There is no change to the dividend forecast.